ANAHEIM : City to Buy Portion of Power Plant

The City Council on Tuesday approved spending $63.5 million to buy a portion of a New Mexico power plant that is to help supply the city’s electricity needs for the next three decades.

The city has until May of next year to complete the purchase of a part of the coal-fired power plant, but the utility department officials would like to complete the deal by the end of this year.

“This is a wonderful opportunity for the city to acquire a clean-burning, environmentally sound plant that will provide power to Anaheim residents for many years,” said Edward K. Aghjayan, general manager of the city Public Utilities Department.

Under the agreement approved by a 4-0 vote, the city would use bonds to buy about 10% of the San Juan Generating Station Unit 4 from Public Service Co. of New Mexico.

Currently, the city-owned utility company does not need extra power but is preparing for cuts from two of its main power suppliers in coming years. By 1995, a contract with one supplier will expire and power from another company, Southern California Edison Co., will be substantially reduced.

The city would own its portion of the San Juan facility for the remaining life of the plant, estimated to be 30 years. Officials said it is too early to know whether this purchase will affect electricity rates charged to Anaheim residents.